- The Swedish Krona eased, halting a 2-day rally despite upbeat service PMI.
- Swedens service PMI rose to 52.3 in July from previous months revised reading of 49.8 and well above the forecast of 49.7.
- USD/SEK trades 0.1 percent up at 9.6416, having hit a multi-year high of 9.7000 on Thursday.
- The major failed to breach the 9.7000 level last week and has slipped lower.
- Technical indicators support upside - RSI strong at 67.36 and Stochs show a bullish crossover
- Immediate resistance is located at 9.6776 (July 31 High), break above could take it near 9.7000 (August 1 High).
- On the lower side, support is seen at 9.5934 (5-DMA), close below could dag it till 9.5695 (7-EMA).
Recommendation: Good to buy on dips around 9.6100, with stop loss of 9.5934 and target price at 9.6776.
